Abstract. Photovoltaic (PV) systems are a promising alternative for electricity production as they harness solar energy, a clean and renewable source, reducing reliance on fossil fuels and minimizing environmental impact. However, the overall efficiency of conventional PV systems remains limited since a significant portion of the incident solar energy is converted into heat, which is typically wasted (Zhou et al. 2025). To address this issue, in this paper we are developing a cogeneration system (PV/T) that not only generates electricity but also captures and utilizes the excess thermal energy for space heating (Wei et al. 2025). This system integrates a heat storage solution to enhance energy availability and optimize thermal management, ensuring improved overall efficiency and better utilization of solar resources. To achieve this, we will use Matlab/Simulink to design and simulate a Photovoltaic Thermal (PV/T) Hybrid Solar Panel system, allowing us to analyze its performance and optimize its operation for residential heating applications. As results, we will obtain key parameters such as module temperature, electrical power output, and the required storage tank volume. Additionally, we will test different PV technologies, comparing their performance to identify the most suitable option for the climatic conditions of Lithuania. Furthermore, we will observe solar variables variations and pump flow rates to assess their impact on system efficiency and optimize energy distribution. These results highlight the potential of PV/T technology for optimizing solar energy utilization in residential heating. Further experimental validation isneeded to refine the model and optimize system performance for different climatic conditions.